Law Offices of Mark S. Nelson

5 Signs You Should Consider Filing For Bankruptcy

It can be difficult to know when to categorize your debts and unmanageable and decide to file for bankruptcy. Most people resort to bankruptcy as a final option after years of struggling with debt. If you notice one or more of the following five signs, then it might be time to consider filing for bankruptcy with the help of an attorney.

1. You consistently miss bill payments

It is common to miss a monthly bill payment when an unexpected expense comes up. For those facing unmanagble debts, missed bill payments become a consistent problem. Many debtors must choose which bill is the most important when they do not have enough income to cover all living expenses. If you are consistently unable to pay for important monthly bills, you should consider if bankruptcy is the right option for you.

2. Payments never reduce your total debt

When you are able to make payments does it seem like they never make a dent? If you are paying minimum monthly payments on loans then you may be making interest-only payments. This means your total principal balance has not been touched by your monthly payments. It may also mean that while you make progress on one bill, another one continues to charge you late fees. If your monthly payments do not reduce your total debt then your debt may be unmanageable for your income.

3. You are facing threat of foreclosure

Your mortgage payments may suffer when you must pay other monthly bills. If your mortgage payments go unpaid for an extended period of time, you may face foreclosure. Foreclosure will mean losing your home and uprooting your family. Bankruptcy will put an automatic stay on home foreclosure. It can help you manage your debts in order to focus on your mortgage and can allow you to keep your home.

4. You are afraid to answer the phone

Creditor harassment is a common result of unpaid debt. Creditors may constantly call you and send letters in an attempt to force you into paying bills. Unfortunately many people simply do not have the choice to pay their debts. Constant harassment from creditor phone calls and letters can cause stress and even fear to answer the phone. Bankruptcy will immediately stop creditors in their tracks. Bankruptcy places a legal automatic stay on your accounts, giving you freedom from the harassment.

5. You are considering applying for a payday loan

Many debtors rely on high-interest loans, or payday loans, in order to afford important purchases. These loans are often a step in the wrong direction for those facing large amounts of debt. Missed payments will pile high interest fees onto your account and end up costing you much more in the end.

Filing for bankruptcy might be the fresh start that you need when facing one or more of the above five signs. Bankruptcy will discharge unsecured debts so you can feel in control of your finances again. Contact a bankruptcy attorney to find out if bankruptcy is the right solution for you.

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Law Offices of Mark S. Nelson

215 McHenry Ave.
Modesto, CA 95354

Phone: 209-353-1277
Fax: 209-529-6207
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